99% Dip
Before the US stock market opened this week, Signature Bank's pre-market price plummeted by 99%, and Silicon Valley Bank's pre-market price dropped by more than 97%, almost down to zero.
Comedian Bill Maher mocked on his show, saying that the reason why Signature Bank and Silicon Valley Bank went bust was because they invested in the cryptocurrency industry. "The sign of a bad bank is that you run out of imaginary money," Bill Maher quipped.
US President Biden also clarified his position in a public speech: the government will not provide relief to investors who suffer losses because investing inherently involves risk, which is how capitalism operates.
Buffett cleared his position in Wells Fargo last year. However, he still holds a considerable position in Bank of America (about 12%).
Former chief foreign exchange strategist at Goldman Sachs, Robin Brooks, ridiculed some claims made by the cryptocurrency industry that the US dollar would suffer super depreciation and lose its reserve currency status, arguing that the dollar is currently in a stronger position relative to any other currency.
This is because debt is in dollars, isn't it?
Countless trade settlement or repayment promises around the world are settled in dollars. However, when it's time to settle, because of the Fed's tightening, dollars cannot be obtained. Promises cannot be broken, time cannot be delayed, so countless people, like a starving man seeing a pile of meat, will do whatever it takes to get some dollars.
Supply is less than demand, and the US dollar exchange rate remains strong, isn't it?
But the one who provides the supply is the Federal Reserve.
People are like blindfolded donkeys, dancing wildly with Powell's monetary baton.
The dance floor is lit up brightly, with deafening electronic music mixed with noisy voices that cannot be understood, the pungent smell of makeup, the faint smell of cologne and body odor, and the musty smell of damp mold from an unknown corner. The disappearance of spirit, twisted limbs, messy steps, and ambiguous atmosphere.
Biu~ biu~ A low roar, like the sound of a silencer. The music suddenly stops.
The people who have not yet reacted stand still, their heads in a daze, not knowing what to do for a while.
"Keep playing! Keep dancing!" a voice shouts.
The piercing music starts again. The twisted limbs move again. Two figures flash out from a corner and drag the two bodies on the ground away.
The following is ChatGPT's reading comprehension of what was written above:
The article discusses recent events in the US banking and cryptocurrency industries, including the sharp drop in stock prices for Signature Bank and Silicon Valley Bank, which are believed to have invested in cryptocurrency. The author notes that President Biden has stated that the government will not provide relief to investors who suffer losses because investing inherently involves risk. Additionally, the article mentions Robin Brooks' criticism of claims that the US dollar will lose its reserve currency status, as the dollar is still widely used for trade and settlement around the world. The article concludes with a surreal and disturbing depiction of a party atmosphere suddenly interrupted by violence.
Extra: The full book of "History of Bitcoin" has been released on leanpub https://leanpub.com/history-of-bitcoin , and opensea https://opensea.io/assets/ethereum/0x495f947276749ce646f68ac8c248420045cb7b5e/105485037225361479373965289160919783096944397316814880893051094763402285810664
nostr: npub1dlwqsauewd56dekrnuxh8xukvg7pgeelwp39qah8ts5x28tmf7pqp5tcp3 twitter: https://twitter.com/liujiaolian discord: https://discord.gg/9pGpRgUYPp substack: https://blockcoach.substack.com/
(Disclaimer: The content of this article does not constitute any investment advice. Cryptocurrency is a very high-risk product, and there is a risk of going zero at any time. Please participate carefully and be responsible for yourself.)